Transcript Slide 1

Airport Parking in
North America
Brett Bain
November 25, 2010
Taxation and Economic Conditions in
North American Airports
• Tax Structure - United States vs Canada
• US Government provides 2.8 Billion annually for
Airport development and maintenance
• Canadian Airports receive no funding and pay a
minimum of 10% of gross revenues in tax
• Economic conditions have significantly impacted
airports in North America
• Canada less impacted by economic downturn
• US Airports more optimistic that the economy will
rebound – not shared by all airports and regions
• Due to geography and climate, Canada is less reliant
on public transportation
Canadian Passengers
Year
Domestic Inter/Trans border
Total
Difference % change
2000
52,001,167
34,001,836
86,003,003
3,515,798
4.08%
2001
48,490,816
31,723,852
80,214,668
-5,788,335
-7.22%
2002
47,724,839
30,504,665
78,229,504
-1,985,164
-2.54%
2003
48,867,556
29,269,662
78,137,218
-92,286
-0.12%
2004
48,842,030
29,549,194
78,391,224
254,006
0.32%
2005
54,724,164
32,760,386
87,484,550
9,093,326 10.39%
2006
63,527,554
38,149,774
101,677,328
14,192,778 13.96%
2007
66,648,073
39,461,261
106,109,334
4,432,006
4.18%
2008
68,269,747
40,756,221
109,025,968
2,916,634
2.68%
2009
63,488,843
39,600,034
103,088,877
-5,937,091
-5.76%
2010
43,742,706
27,966,648
71,709,354
3.70%
United States Passengers
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010 YTD
Domestic
599,563,678
559,618,055
551,960,680
583,293,766
629,769,620
657,261,487
658,362,620
679,185,450
651,721,539
617,977,733
364,429,503
International
134,287,145
122,907,077
118,718,997
117,569,855
133,940,071
143,588,422
149,724,787
156,250,990
157,706,107
149,179,272
90,419,181
Total
733,850,823
682,525,132
670,679,677
700,863,621
763,709,691
800,849,909
808,087,407
835,436,440
809,427,646
767,157,005
454,848,684
% Change
-6.99%
-1.74%
4.50%
8.97%
4.86%
0.90%
3.38%
-3.11%
-5.22%
1.12%
Major Canadian Airport Rate Structures
Maximum Daily Rates
Airport
ABR
# spaces Hourly
Daily
Economy Remote Valet
POF
CCIO
Vancouver
YVR
10050 $30.25 $30.25
$21.25 $15.75 $30.00
Yes
Yes
Edmonton
YEG
10200 $20.00 $20.00
$11.00
$9.50 $30.00
Yes
Yes
Calgary
YYC
7845 $35.00 $35.00
$21.00
$9.95
Yes
Yes
Winnipeg
YWG
2500 $25.00 $15.00
$15.00 $15.00 $25.00
Yes
Yes
Toronto
YYZ
12000 $144.00 $28.00
$18.00 $15.00 $40.00
No
Yes
Montreal
YUL
10000 $35.00 $23.00
$18.00 $13.00 $28.00
Yes
Yes
Halifax
YHZ
3300 $88.00 $18.00
$15.00 $12.00
Yes
Yes
NA
NA
Major US Airport Rate Structures
Maximum Daily Rates
Airport
ABR
# spaces Hourly
Daily Economy Remote
Valet
POF
CCIO
Atlanta
ATL
30,000+
$36.00
$16.00
$12.00
$9.00
N/A
Yes
Yes
Dallas Ft. Worth
DFW
40,000+
$19.00
$19.00
$12.00
$8.00 $22.00
No
No
Denver
DIA
40,000+
$36.00
$18.00
$10.00
$6.00 $27.00
No
Yes
Las Vegas
LAS
25,000
$36.00
$14.00
$8.00
$21.00
No
Yes
San Francisco
SFO
25,000
$33.00
$20.00
$14.00
$38.00
No
Yes
Charlotte Douglas
CLT
30,000+
$16.00
$6.00
$6.00
$4.00 $19.00
No
No
Ft. Lauderdale
FLL
12,000
$36.00
$15.00
$7.50 $21.00
No
Yes
Washington
DCA
9,000
$36.00
$20.00
$12.00
No
No
Santa Ana
SNA
7,600
$24.00
$17.00
$14.00
No
Yes
Dallas Love Field
DAL
7,500
$14.00
$10.00
No
No
Charleston
CHS
5,000
$15.00
$10.00
No
No
Huntsville
HVS
4,500
$24.00
$19.00
No
Yes
$30.00
$15.00
$7.00
US On Airport Average Parking Rates
US On Airport Average Parking Rates
Current Trends in Canadian Airports
• Canadian airports have moved to technology
solutions
• Economic conditions have slowed the furthering of
products
• Many airports are now branding their products for
easier consumer identification
• Customer service and a focus on diversity of product
selection are important factors
• Off airport parking operators are a significant factor
in revenue leakage in Canada
Trends in Major US Airports
• Most US Airports still use a
cashier booth method for
revenue collection
• Less reliance on technology
• About 50% of major
• Many airports
airports use the cashier collection
forcredit
revenues – some hesitancy to
have recently method
adopted
adopt automated operations
card in/out payment
• Chip and debit cards not
common in the United States
• Use of Pay on Foot is limited
• Credit Card express pay in lane
being adopted
• More limited use of the internet • Focus on energy reduction
and maintenance of structures
for parking and generally not
is a trend
integrated to PARC system
Other Factors Which Impact Consumer Choices
• Consumer perception that airport parking is more
expensive than off airport products
• Perception has allowed off airport operators to
thrive
• Off airport operators tend to be national companies
which allow for more available discount options
• Consumers driven to lower priced products during
economic downturn
• Airports across North America have seen large
decreases in short term hourly parking
• Product Offering diversity and customer service key
Market Leakage Impacts Airport Revenues
So What is the Answer?
• A collective approach by Canadian airports to address
the revenue drain represented by off airport operators
• Formation of a national parking brand to compete
• Coordinated national and local marketing of the product
• Unique branding from existing products in airports
• Going head to head with off airport operators
• National and international alliances among airports to
be able to develop marketing programs to compete
• EIA is prepared to offer jetSet as a national brand name
to other airports
Welcome to jetSet
JetSet – The Future of Airport Parking in
North America
3,300 stalls – fully powered
24 hour shuttle service
Fully automated operation
Three heated bus shelters with self service check-in (CUSS)
Full service valet facility with full service airline check-in
counters & CUSS
• Chauntry web application for pre booking
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JetSet Website
Jetset Pricing Structure
Standards Rates
Product
Daily
Weekly
Monthly
youPark
$9.50
$47.50
$95.00
wePark
$13.50
$67.50
$270.00
Online booking Discounts
Advance
Purchase
60 days
30 days
10 days
3-10 days
Discount
25% off
20% off
10% off
5% off
Advertising and Promotion
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Travel agent promotions and FAM tours
Downtown street team events
Radio and TV ads, print media
Billboard advertising
Discount coupons
• Lexus partnership promo
• Westjet monthly vacation
Future Trends
• US is moving forward with Credit Card In/Out
Service
• Tap and Go Chip Card is new but gaining ground
• Pay on Foot and Credit Card Express payment are
popular in Canada – not common in the US
• Business Parking products which guarantee space
and access for a premium price emerging
• US moving away from manned cashier collection
method is commencing
• North American airports marketing and creating
new products to increase customer base
Questions